Andritz AG — Interim / Quarterly Report 2015

May 6, 2015

Annual and financial reports

The annual reports and financial reports are available for download at www,andritz,com, Printed copies can be requested free of charge by e-mail to investors@andritz,com,

ANDRITZ AG

Stattegger Strasse 18 8045 Graz. Austria investors@andritz,com

Produced in-house using FIRE,sys

Key financial figures of the ANDRITZ GROUP	02
Key financial figures of the business areas 03
Management report	04
Business areas HYDRO PULP & PAPER METALS SEPARATION	10 10 11 13 15
Consolidated financial statements of the ANDRITZ GROUP Consolidated income statement Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Cash flows from acquisitions of subsidiaries Notes	16 16 17 18 19 20 20 21
Declaration pursuant to article 87 (1) of the (Austrian) Stock Exchange Act	24

KEY FINANCIAL FIGURES OF THE ANDRITZ GROUP

	Unit	Q1 2015	Q1 2014	+/-	2014
Order intake	MEUR	1,430.6	1,742.2	-17.9%	6,101.0
Order backlog (as of end of period)	MEUR	7,785.6	7,734.7	+0.7%	7,510.6
Sales	MEUR	1,404.3	1,219.5	+15.2%	5,859.3
Return on sales1)	%	4.4	2.4	-	5.0
EBITDA2)	MEUR	96.1	69.5	+38.3%	472.0
EBITA3)	MEUR	73.4	48.6	+51.0%	379.5
Earnings Before Interest and Taxes (EBIT)	MEUR	61.5	29.0	+112.1%	295.7
Earnings Before Taxes (EBT)	MEUR	62.6	27.5	+127.6%	299.4
Net income (including non-controlling interests)	MEUR	43.8	19.3	+126.9%	210.0
Net income (without non-controlling interests)	MEUR	44.0	20.7	+112.6%	210.9
Cash flow from operating activities	MEUR	37.2	61.0	-39.0%	342.1
Capital expenditure4)	MEUR	20.8	17.2	+20.9%	106.5
Employees (as of end of period; without apprentices)	-	24,855	23,790	+4.5%	24,853
Fixed assets	MEUR	1,835.0	1,741.6	+5.4%	1,780.0
Current assets	MEUR	4,272.9	3,781.6	+13.0%	4,187.6
Shareholders' equity5)	MEUR	1,002.9	893.5	+12.2%	1,014.8
Provisions	MEUR	1,046.0	953.0	+9.8%	1,056.2
Liabilities	MEUR	4,059.0	3,676.7	+10.4%	3,896.6
Total assets	MEUR	6,107.9	5,523.2	+10.6%	5,967.6
Equity ratio6)	%	16.4	16.2	-	17.0
Return on equity7)	%	6.2	3.1	-	29.5
Return on investment8)	%	1.0	0.5	-	5.0
Liquid funds9)	MEUR	1,610.2	1,524.0	+5.7%	1,701.6
Net liquidity10)	MEUR	1,114.2	891.1	+25.0%	1,065.1
Net debt11)	MEUR	-703.4	-577.6	-21.8%	-659.4
Net working capital12)	MEUR	-673.2	-590.2	-14.1%	-570.9
Capital employed13)	MEUR	303.7	367.1	-17.3%	387.0
Gearing14)	%	-70.1	-64.6	-	-65.0
EBITDA margin	%	6.8	5.7	-	8.1
EBITA margin	%	5.2	4.0	-	6.5
EBIT margin	%	4.4	2.4	-	5.0
Net income15)/sales	%	3.1	1.6	-	3.6
Depreciation and amortization/sales	%	2.5	3.3	-	2.9

1) EBIT (Earnings Before Interest and Taxes)/sales 2) Earnings Before Interest, Taxes, Depreciation and Amortization 3) Earnings Before Interest, Taxes, Amortization of identifiable assets acquired in a business combination and recognized separately from goodwill at the amount of 11,902 TEUR (19,619 TEUR for Q1 2014, 78,038 TEUR for 2014) and impairment of goodwill at the amount of 0 TEUR (0 TEUR for Q1 2014, 5,747 TEUR for 2014) 4) Additions to intangible assets and property, plant, and equipment 5) Total shareholders' equity incl. non-controlling interests 6) Shareholders' equity/total assets 7) EBT (Earnings Before Taxes)/shareholders' equity 8) EBIT (Earnings Before Interest and Taxes)/total assets 9) Cash and cash equivalents plus marketable securities plus loans against borrowers' notes 10) Liquid funds plus fair value of interest rate swaps minus financial liabilities 11) Interest bearing liabilities including provisions for severance payments, pensions, and jubilee payments minus cash and cash equivalents, marketable securities and loans against borrowers' notes 12) Non-current receivables plus current assets (excluding cash and cash equivalents as well as marketable securities and loans against borrowers' notes) minus other non-current liabilities and current liabilities (excluding financial liabilities and provisions) 13) Net working capital plus intangible assets and property, plant, and equipment 14) Net debt/total shareholders' equity 15) Net income (including non-controlling interests)

All figures according to IFRS. Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages. MEUR = million euros. TEUR = thousand euros.

KEY FINANCIAL FIGURES OF THE BUSINESS AREAS

HYDRO	Unit	Q1 2015	Q1 2014	+/-	2014
Order intake	MEUR	447.0	523.3	-14.6%	1,816.7
Order backlog (as of end of period)	MEUR	3,857.1	3,759.0	+2.6%	3,708.6
Sales	MEUR	407.9	362.8	+12.4%	1,752.3
EBITDA	MEUR	28.0	31.6	-11.4%	177.2
EBITDA margin	%	6.9	8.7	-	10.1
EBITA	MEUR	19.9	24.4	-18.4%	144.8
EBITA margin	%	4.9	6.7	-	8.3
Employees (as of end of period;
without apprentices)	-	8,467	7,526	+12.5%	8,339

PULP & PAPER	Unit	Q1 2015	Q1 2014	+/-	2014
Order intake	MEUR	462.4	654.8	-29.4%	1,995.7
Order backlog (as of end of period)	MEUR	1,920.3	2,095.7	-8.4%	1,875.4
Sales	MEUR	480.5	399.6	+20.2%	1,969.3
EBITDA	MEUR	33.6	16.3	+106.1%	127.6
EBITDA margin	%	7.0	4.1	-	6.5
EBITA	MEUR	27.8	10.4	+167.3%	102.9
EBITA margin	%	5.8	2.6	-	5.2
Employees (as of end of period;
without apprentices)	-	7,158	7,148	+0.1%	7,236

METALS	Unit	Q1 2015	Q1 2014	+/-	2014
Order intake	MEUR	384.9	420.1	-8.4%	1,692.8
Order backlog (as of end of period)	MEUR	1,622.6	1,509.2	+7.5%	1,566.1
Sales	MEUR	377.1	332.8	+13.3%	1,550.4
EBITDA	MEUR	28.2	19.1	+47.6%	134.0
EBITDA margin	%	7.5	5.7	-	8.6
EBITA	MEUR	21.8	13.3	+63.9%	110.2
EBITA margin	%	5.8	4.0	-	7.1
Employees (as of end of period;
without apprentices)	-	6,407	6,273	+2.1%	6,432

SEPARATION	Unit	Q1 2015	Q1 2014	+/-	2014
Order intake	MEUR	136.3	144.0	-5.3%	595.8
Order backlog (as of end of period)	MEUR	385.6	370.8	+4.0%	360.5
Sales	MEUR	138.8	124.3	+11.7%	587.3
EBITDA	MEUR	6.3	2.5	+152.0%	33.2
EBITDA margin	%	4.5	2.0	-	5.7
EBITA	MEUR	3.9	0.5	+680.0%	21.6
EBITA margin	%	2.8	0.4	-	3.7
Employees (as of end of period;
without apprentices)	-	2,823	2,843	-0.7%	2,846

MANAGEMENT REPORT

GENERAL ECONOMIC CONDITIONS

The economies of the world's main regions saw a stable development in the first quarter of 2015.

In the USA, the economy continues to recover. Although the US economy was under slight pressure due to the weak global economy and strong US dollar during the reporting period, it was still able to continue its growth thanks to the unchanged high private consumption, which is the most important contributor to GDP growth in the USA. The ongoing recovery of the US labor market also supported this development. The strong increase in employment figures reduced the unemployment rate to around 5.5% during the reporting period. According to financial experts, it is likely that the US Federal Reserve (FED) will raise key interest rates this year.

In Europe, however, the economic recovery is still very slow, but there are increasing signs that there will be an economic upturn in the next few quarters. This is supported in particular by the weak euro, which makes export oriented industries in Europe more competitive, and by the drop in the oil price. In order to avert any deflation and to support the economic recovery in the euro zone, the European Central Bank (ECB) launched an extensive bond purchasing program at the beginning of March. The ECB intends to buy government bonds from European countries amounting to 60 billion euros every month, with 1.14 trillion euros to be poured into the financial markets by the end of September 2016.

In the emerging markets, only China saw a significant growth, even though GDP growth was notably lower than in the preceding years. In contrast, Brazil, India, and Russia continue to stagnate and thus do not provide any substantial growth impulses for the global economy.

Sources: research reports by various banks, OECD

BUSINESS DEVELOPMENT

Notes

• All figures according to IFRS
• Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages.
• MEUR = million euro; TEUR = thousand euro

Sales

In the first quarter of 2015, sales of the ANDRITZ GROUP amounted to 1,404.3 MEUR and were thus significantly higher (+15.2%) than the reference figure for the previous year (Q1 2014: 1,219.5 MEUR). All business areas, particularly PULP & PAPER, recorded a significant increase in sales. The business areas' sales development at a glance:

	Q1 2015 (MEUR)	Q1 2014 (MEUR)	+/- ( %)
HYDRO	407.9	362.8	+12.4
PULP & PAPER	480.5	399.6	+20.2
METALS	377.1	332.8	+13.3
SEPARATION	138.8	124.3	+11.7

Share of service sales of Group and business area sales in %

	Q1 2015	Q1 2014
ANDRITZ GROUP	29	31
HYDRO	25	26
PULP & PAPER	35	39
METALS	19	21
SEPARATION	44	44

Order intake

In the first quarter of 2015, the order intake of the Group amounted to 1,430.6 MEUR and thus reached a satisfactory level. However, it was 17.9% below the extraordinary high reference figure of the previous year (Q1 2014: 1,742.2 MEUR), which included large orders in the HYDRO and PULP & PAPER business areas. The business areas' development in detail:

• HYDRO: At 447.0 MEUR, the order intake was 14.6% below the high level of the previous year's reference period (Q1 2014: 523.3 MEUR).
• PULP & PAPER: The order intake amounted to 462.4 MEUR (-29.4% versus Q1 2014: 654.8 MEUR; the previous year's reference period included the order for the supply of major equipment for Klabin's new pulp mill, Brazil).
• METALS: At 384.9 MEUR, the order intake reached a solid level and was as expected below the previous year's reference period (-8.4% versus Q1 2014: 420.1 MEUR).
• SEPARATION: The order intake amounted to 136.3 MEUR (-5.3% versus Q1 2014: 144.0 MEUR).

Order backlog

As of March 31, 2015, the order backlog of the ANDRITZ GROUP, at 7,785.6 MEUR, increased by 3.7% compared to the end of last year (December 31, 2014: 7,510.6 MEUR).

Earnings

The EBITA of the Group amounted to 73.4 MEUR (Q1 2014: 48.6 MEUR). Earnings were thus 51.0% above the low reference figure of last year, but still failed to reach a satisfactory level, as did the EBITA margin at 5.2% (Q1 2014: 4.0%). This is mainly attributable to temporary exchange rate differences from negative market values from project-related currency hedges that will balance out by the time the orders are completed/paid. Excluding these market values, the EBITA margin of the Group would have amounted to 6.1%.

The financial result improved to 1.1 MEUR (Q1 2014: -1.5 MEUR). This positive development is mainly due to the higher average net liquidity compared to the previous year and to the redemption of a corporate bond (nominal value: 150 MEUR) in February 2015.

Net income (without non-controlling interests) reached 44.0 MEUR and was thus significantly above the very low reference figure for the previous year (Q1 2014: 20.7 MEUR).

Net worth position and capital structure

The net worth position and capital structure as of March 31, 2015 remained solid. Total assets amounted to 6,107.9 MEUR (December 31, 2014: 5,967.6 MEUR). The equity ratio reached 16.4% (December 31, 2014: 17.0%).

Liquid funds (cash and cash equivalents plus marketable securities plus loans against borrowers' notes) amounted to 1,610.2 MEUR (December 31, 2014: 1,701.6 MEUR), net liquidity (liquid funds plus fair value of interest rate swaps minus financial liabilities) amounted to 1,114.2 MEUR (December 31, 2014: 1,065.1 MEUR).

In addition to the high net liquidity, the ANDRITZ GROUP also has the following credit and surety lines for performance of contracts, down payments, guarantees, and so on, at its disposal:

Credit lines: 342 MEUR, thereof 135 MEUR utilized

Surety and guarantee lines: 5,905 MEUR, thereof 3,272 MEUR utilized

liabilities: 13%

Assets
2,071.4 MEUR		2,496.3 MEUR			1,540.2 MEUR
Long-term assets: 34%			Short-term assets: 41%	Cash and cash equivalents and marketable securities: 25%
Shareholders' equity and liabilities
1,002.9 MEUR	516.2 MEUR	820.0 MEUR	3,768.8 MEUR
Shareholders' equity incl. minority	Financial liabilities: 8%	Other long-term	Other short-term liabilities: 63%

Employees

interests: 16%

As of March 31, 2015, the number of ANDRITZ GROUP employees amounted to 24,855 employees (December 31, 2014: 24,853 employees).

Major risks during the remaining months of the financial year and risk management

The ANDRITZ GROUP has a long-established Group-wide risk management system at its disposal whose goal is to identify nascent risks at an early stage and take countermeasures if necessary. This is an important element of active risk management within the Group. However, there is no guarantee that these monitoring and risk control systems are effective enough.

The essential risks for the business development of the ANDRITZ GROUP relate above all to the Group's dependence on the general economic environment and the development of the industries it serves, to whether major orders are received and to the risks they entail; and to whether adequate sales proceeds are realized from the high order backlog. Furthermore, unexpected cost increases during the execution of orders constitute a considerable risk, particularly in so-called turnkey or EPC orders, where the Group may assume responsibility for engineering, civil work, and erection of a factory in addition to delivery of ANDRITZ equipment and systems. Projects of this kind involve high risks concerning cooperation with third parties contracted to carry out engineering, as well as civil and construction work (for example the risk of strikes, failure to meet deadlines, or quality problems with components/services purchased from sub-suppliers). Delays and difficulties in achieving the guaranteed performance parameters in the plants that ANDRITZ supplies as well as a possible malfunction in the components and systems supplied by ANDRITZ, that can have serious consequences for individuals and on material assets, also pose substantial risks.

The financial difficulties and the continuing, challenging overall economic development (particularly in Europe and individual emerging markets) also constitute a serious risk for the ANDRITZ GROUP's financial development. In addition, the two-way trade embargo between the European Union and Russia constitutes a risk for the economic development of both of these economic regions. A significant economic weakness may lead to delays in the execution of existing orders and to the postponement or cancellation of existing projects. Cancellations of existing contracts could adversely affect the ANDRITZ GROUP's order backlog, which in turn would have a negative impact on the utilization of the Group's manufacturing capacities.

Complete or partial goodwill impairments resulting from acquisitions may also negatively influence the earnings development of the ANDRITZ GROUP if the targeted financial goals for these companies cannot be reached. In addition, there is always some risk that partial or full impairment will have to be made for some trade accounts receivable.

The Schuler Group acquired in 2013 derives approximately 80% of its sales from the automotive industry, which is generally exposed to severe cyclical swings. Thus, possible negative cyclical fluctuations can have a negative impact on the sales and earnings development of the Schuler Group and thus of the ANDRITZ GROUP.

For the majority of orders, the risk of payment failure by customers is mitigated by means of bank guarantees and export insurance. However, there is no guarantee that there will not be any individual payment failures that will have a substantial negative impact on earnings development of the Group if they occur. Risks related to deliveries to countries with medium to high political risks are typically also insured to a large extent. However, the requirements for full hedging of these risks are not always available. Quarterly credit risk reporting to the Executive Board has been implemented in order to ensure transparency with respect to financial risks on projects and to implement immediate countermeasures if necessary. The reporting shows the maximum expected unsecured credit risk for external orders with a value of over one million euros, which are billed according to percentage of completion (POC), as well as customer ratings.

ANDRITZ processes orders for the HYDRO business area in Brazil through its subsidiary ANDRITZ HYDRO Inepar do Brasil S.A., in which ANDRITZ holds a majority interest. The minority shareholder, Inepar S/A Industria e Construcoes ("Inepar"), has entered into a judicial reorganization process. There is no guarantee that the reorganization process will be successful and that Inepar will not become bankrupt and liquidated. An Inepar bankruptcy could have a considerable negative financial impact on ANDRITZ, especially due to claims of joint and several liability. ANDRITZ has substantial tax credits in Brazil from various transfer taxes. Some of these tax credits were seized as security by the tax authorities for tax liabilities of Inepar and its affiliates on the premise that ANDRITZ HYDRO Inepar is part of the Inepar economic group. ANDRITZ has also received certain labor claims from employees of Inepar entities claiming that ANDRITZ HYDRO Inepar do Brasil S.A. is jointly and severally liable for such claims. ANDRITZ is vigorously contesting these labor and tax claims in several labor and tax collection lawsuits in Brazil.

In the course of its business, the ANDRITZ GROUP is party to numerous legal proceedings before both administrative and judicial courts and bodies, as well as before arbitration tribunals. The substantial majority of such proceedings is of a nature considered typical of the Group's business, including contract and project disputes, product liability claims, and intellectual property litigation. Where appropriate, provisions are made to cover the expected outcome of proceedings to the extent that negative outcomes are likely and reliable estimates can be made. There is no guarantee, however, that these provisions will be sufficient. Given the amounts at stake in some of these disputes, a negative decision for ANDRITZ in one or several of these legal disputes may have a material adverse effect on the earnings and liquidity position of the Group.

The product liability cases include a number of cases alleging injuries and/or death resulting from exposure to asbestos.

Exchange rate risks in connection with the execution of the order backlog are minimized and controlled by derivative financial instruments, in particular by forward exchange contracts and swaps. Net currency exposure of orders in foreign currencies is hedged by forward contracts.

In order to minimize the financial risks as best possible and to enhance monitoring, control, and assessment of its financial and liquidity position, the ANDRITZ GROUP implemented both a comprehensive treasury policy and a transparent information system.

The ANDRITZ GROUP's position in terms of liquidity is very good, and the Group has high liquidity reserves. The Group avoids dependence on one single or only a few banks. To ensure independence, no bank will receive more than a certain defined amount of the business in any important product (cash and cash equivalents, financial liabilities, financial assets, guarantees, and derivatives). With this diversification, ANDRITZ is seeking to minimize the counterparty risk as best possible. Nevertheless, if one or more banks were to become insolvent, this would have a considerable negative influence on the earnings development and shareholders' equity of the ANDRITZ GROUP. In addition, the lowering of ANDRITZ's credit rating by several banks can limit the financial leeway available to ANDRITZ, particularly regarding sureties to be issued.

ANDRITZ pursues a risk-averse investment strategy. Cash is largely invested in low-risk financial assets, such as government bonds, government-guaranteed bonds, money market funds, investment funds to cover pension obligations, loans against borrowers' notes insured by a certificate of deposit, or term deposits. However, turbulences on the international financial markets may lead to unfavorable price developments for various securities in which the Group has invested or make them non-tradable. This could have an adverse effect on the ANDRITZ GROUP's financial result or shareholders' equity due to necessary depreciation or value adjustments. The crisis has also heightened the risk of default by some issuers of securities, as well as by customers. The Executive Board is informed at regular intervals of the extent and volume of current risk exposure in the ANDRITZ GROUP.

Although the risk of the complete or partial breakdown of the euro zone and of a possible collapse of the euro currency system has diminished in the past few months, but it still cannot be ruled out entirely. In such negative case, a complete or partial breakdown of the euro zone would very probably have a negative effect on the financial, liquidity, and earnings development of the Group. For further information on risks, please refer to the ANDRITZ annual financial report 2014.

Impact of exchange rate fluctuations

Fluctuations in exchange rates in connection with the execution of the order backlog are largely hedged by forward rate contracts. Exchange rate risks resulting from the recognition of equity are not hedged.

Depreciation of the euro against many other currencies could also have a positive impact on the shareholders' equity as well on the sales and earnings development of the ANDRITZ GROUP (translation effect).

Information pursuant to Article 87 (4) of the (Austrian) Stock Exchange Act

During the reporting period, no major business transactions were conducted with related persons and companies.

Important events after reporting period

On April 28, 2015, ANDRITZ Pulp Technologies Punta Pereira S.A., a subsidiary of international technology Group ANDRITZ and Celulosa y Energía Punta Pereira S.A. ("CEPP"), a Joint Venture by Stora Enso and Arauco, have amicably settled the arbitration proceedings between them in connection with several contracts for delivery of equipment and systems for CEPP's Montes del Plata pulp mill. The settlement will not have a material effect on the ANDRITZ Group's earnings, thus ANDRITZ's earnings expectations for the full year 2015 remain unchanged.

OUTLOOK

Economic experts do not expect any significant changes in the general economic conditions during the coming months. While the economy in the USA should continue to recover, subdued development is expected in Europe and most countries in the emerging markets.

In view of these conditions, no substantial change is expected in project activity in the markets served by the ANDRITZ GROUP during the remaining months of the 2015 business year compared to the satisfactory level of the previous year. Based on these expectations and the order backlog at the end of March 2015, ANDRITZ currently expects a slight increase in sales and net income for 2015 compared to the previous year.

However, if the global economy suffers a severe setback in the coming months, this could have a negative impact on ANDRITZ's business development. This may lead to organizational and capacity adjustments and, as a result, to financial provisions that could have a negative effect on earnings.

Disclaimer:

Certain statements contained in this report constitute 'forward-looking statements.' These statements, which contain the words "believe", "intend", "expect", and words of a similar meaning, reflect the Executive Board's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forwardlooking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.

HYDRO

MARKET DEVELOPMENT

Global project activity for electromechanical equipment in hydropower plants was solid, but marked by restraint during the first quarter of 2015. In addition to various modernization and rehabilitation projects in Europe and North America, some new hydropower projects in the emerging markets, particularly in South America and Africa, are currently being implemented or in the planning phase. Unchanged good project activity was noted both for small-scale hydropower plants and for pumps.

IMPORTANT EVENTS

Tidal Lagoon Swansea Bay selected ANDRITZ HYDRO as a part of a consortium as preferred bidder for the supply of electromechanical equipment for the world's first tidal lagoon hydropower project in Swansea Bay, Wales. The order is scheduled to enter into force in the later course of 2015 upon fulfillment of all requirements and procedures. Commercial operation is scheduled to begin in 2019. The tidal lagoon hydropower plant will be located in the Severn Estuary and have an installed capacity of 16 units with over 20 megawatts each. The Severn Estuary has the second highest tidal range in the world. In this estuary, Swansea Bay benefits from an average tidal range of 8.5 meters during spring tides. The plant will supply clean, renewable, and predictable power for over 155,000 households and contribute significantly towards national carbon emission reduction targets with over 236,000 tons of CO2 saved each year.

Following successful hand-over of the first two units at the end of last year, the third unit in the 292-megawatt hydropower station Sogamoso, Colombia, was handed over during the reporting period.

At the Pembelik hydropower plant, Turkey, the first unit supplied by the business area went into operation with a total output of 65.8 megawatts. On behalf of Darenhes Elektrik Üretimi, a total of four Francis units will be supplied for the Pembelik and Tatar hydropower stations.

IMPORTANT ORDERS

Kargi Enerji Üretim ve Ticaret awarded ANDRITZ HYDRO an order to supply the entire electromechanical equipment for the Kargi Sakarya hydropower plant, Turkey. The order comprises two 48-megawatt Francis turbines, two generators, and the electrical equipment.

The business area received an order from Brookfield Renewable Energy Group to upgrade the two 333 megavolt ampere generators at the Bear Swamp hydropower station, USA.

Comision Federal de Electricidad ordered the modernization of four Francis units at the Temascal hydropower station, Mexico.

Automation of hydropower plants as well as protection and excitation systems play an important role in modernization and rehabilitation projects. In this sector, ANDRITZ HYDRO received technically demanding orders worldwide during the reporting period, including projects for hydropower plants at Birsfelden, Switzerland; Miaowei, China; Tarbela, Pakistan; and La Venta, Mexico.

In the small-scale hydropower equipment sector, where ANDRITZ HYDRO leads the world market, the business area booked numerous important orders, including supplies to the hydropower plants Ringedalen, Norway; Manolo Fortich 1 and 2, Philippines; Nam Tha 3, Vietnam; New Post Creek, Canada; as well as Lower Nyamindi and South Mara, Kenya.

Pumps for water treatment will be supplied to five Iraqi pumping stations. The scope of supply includes 40 double-flow pumps, nine vertical line shaft pumps, and six single-stage centrifugal pumps, including motors.

PULP & PAPER

MARKET DEVELOPMENT

The international pulp market showed stable development in the first quarter of 2015. The demand from paper producers remained at a favorable level, and there were also no substantial changes on the supply side compared to the previous quarters. The price for NBSK (Northern Bleached Softwood Kraft) long-fiber pulp slightly declined from around 930 USD per ton at the beginning of January 2015 to approximately 880 USD per ton at the end of March 2015. The price for short-fiber pulp (eucalyptus) remained stable at around 760 USD per ton.

The market for pulp mill equipment showed solid project and investment activity during the reporting period, both for modernization projects and greenfield pulp mills. The competitive environment and price pressure for suppliers of pulp mill equipment continued to be very challenging.

IMPORTANT EVENTS

New ANDRITZ tissue machines started up for Shandong Sun Paper Industry, Hunan Hengan Living Paper Products, and Zhejiang Jingxing Paper, China; for Doubletree Paper Mills, USA; and for Shin-Ei Paper, Japan.

Emami Paper Mills, India, started up a stock preparation and machine approach system (capacity: 300 tons per day) for the production of coated board. The rebuild of a deinking system at Lee & Man, China, was completed successfully. Chengdu C&S, China, started up stock preparation and machine approach systems for new tissue machines. New stock preparation systems were also included in the tissue machine start-ups in China and the USA.

J-Max (Summit Group), Thailand, started up a complete needling production line from ANDRITZ Nonwovens. The line will produce products for the automotive industry.

In the panelboard sector, the Liaocheng Desheng MDF mill, China, started up a wood board line with ANDRITZ pressurized refining technology.

IMPORTANT ORDERS

ANDRITZ signed a contract with Metsä Fibre, Finland, to deliver key production technologies for a new pulp mill with an annual capacity of 1.3 million tons of pulp. The scope of supply includes a wood processing plant, a softwood and hardwood fiberline (with the highest softwood capacity in the world), the world's most energyefficient black liquor evaporation plant with the highest capacity in Europe, and a recausticizing plant, which will be the largest in Europe. The new mill will be a next-generation bio-product pulp mill which can convert wood raw material into bio-materials and bio-energy in addition to high-quality pulp. It will not use any fossil-based fuels as all of the energy required will be generated from wood. The erection of the new mill is the largest investment in the Finnish forest industry ever.

Enviva, a leading producer of biomass pellets in the USA, ordered woodyard equipment for two biomass pellet plants, each with a capacity of 500,000 tons per year, to be built in North Carolina.

PGNiG Termika, Poland, selected the business area to install a new advanced selective catalytic reduction emissions control plant and to modernize an existing flue gas desulphurization plant. Shandong Sun Honghe Paper Industry, China, ordered a selective catalytic reduction plant.

A customer in Asia ordered a black liquor concentrator and liquid methanol plant. Smurfit Kappa Kraftliner, Sweden, selected the business area to upgrade an evaporation plant to achieve higher energy efficiency and cleaner condensate.

Iggesund Paperboard Workington, UK, selected ANDRITZ to rebuild a board machine including the supply of a new press section and a feeder for tail threading. The new press section will increase production capacity and improve energy efficiency, runability, and product quality. ANDRITZ will also upgrade a pulp drying line for Iggesund Paperboard, Sweden, to increase the line's capacity from its current level of 230-260 tons to 325 tons per day.

ANDRITZ will rebuild the deinked pulp line and supply a new drum pulper and virgin pulp line for Shandong Huatai Paper, China. Also in China, Fuyang Taiping Paper ordered three refiners; Vinda Paper ordered stock preparation and machine approach systems for mills in Shandong and Sichuan provinces; Cheng Loong, Taiwan, ordered a processing line for old corrugated containers including rejects handling.

Paper producer Nepa, India, selected the business area to supply a complete deinking line for the production of printing and writing papers as well as newsprint.

voestalpine Stahl, Austria, selected ANDRITZ to modernize a heat recovery steam generator to improve energy efficiency at its steel plant in Linz.

In the automation area, ANDRITZ will provide engineering, switchgear, and a Programmable Logic Controller (PLC) system for the upgrade of a power substation to a customer in Missouri, USA. Zellstoff Pöls, Austria, contracted for a five-year simulator maintenance program and the inclusion of a recovery boiler advanced control package.

There were several orders for the supply of pressurized refining systems in the panelboard sector, e.g. from Camsan Entegre Agac Sanayi, Turkey, and Ning Xia Jin Ze Yuan, China.

METALS

MARKET DEVELOPMENT

Global project activity for metalforming equipment in the automotive and automotive supplying industries was good in the first quarter of 2015, but no larger orders were awarded. In contrast, there was considerable investment activity in metalforming equipment for coin minting, the packaging industry, and the aerospace industry.

Project activity for equipment for the production and processing of stainless steel, carbon steel, and nonferrous metal strip continued to be low during the reporting period due to the ongoing overcapacities in the international steel/stainless steel industry and to the weak demand as a result of the overall economic situation. Good investment activity, however, was noted in the aluminum industry.

IMPORTANT EVENTS

Daimler, Germany, honored Schuler with the Supplier Award 2014 for the innovation category. Schuler received this award for its advanced press lines with particular flexibility and precision.

A continuous annealing line and a new galvanizing line, supplied to Tangsteel, successfully started up much earlier than planned. Tangsteel is one of the leading Chinese steel producers.

IMPORTANT ORDERS

A car manufacturer in the premium sector ordered two Schuler blanking lines with laser cell and an automatic stacking plant for a servo-press line for a plant in Southern Germany. The systems cut blanks from the running metal strip, and the blanks are then formed into car body parts. As fiber laser is used for cutting, no other tools are required – unlike in conventional cutting presses.

Schuler received its largest order to date in the Hydraulic Service area from a car manufacturer in the premium sector. The order comprises modernization of nine tryout presses at various locations in Germany.

The automotive supplier Läpple Automotive, Germany, ordered a transfer press with a pressing force of 25,000 kilonewtons, including draw cushion, coil line, roll feed, and blank loader. This highly flexible plant produces car components for well-known manufacturers.

Schuler is supplying twelve sets of tools used to manufacture doors and roof frames for a van model to Gestamp, Spain.

Tower Automotive, Italy, ordered a compact TwinServo press (pressing force: 16,000 kilonewtons) with transfer system and coil line.

Thirty-one coin minting presses will be supplied to the Moscow Mint, Russia. This equipment will be used to mint kopecks, rubles, and commemorative coins.

Schuler will be modernizing an existing press line for an American car manufacturer and integrating a flexible blank feeder into this line as well as six crossbar robots 4.0 for rapid transport of parts.

Hubei Tri-Ring Auto Axle, China, awarded an order to supply a complete forging line, comprising a spindle press, three hydraulic presses, and line automation equipment with overhead-mounted robots. The plant manufactures front suspensions for large trucks.

Rizhao Steel, China, ordered a high-performance pickling line for hot-rolled steel strip with an annual capacity of 700,000 tons and a pickling speed of up to 400 meters per minute.

Lasim, Italy, awarded ANDRITZ Soutec an order to supply the first linear laser welding plant with inline ablation for welding Usibor steel. In inline ablation, the aluminum-silicon coating on the steel is removed before laser welding. Usibor steel is a pre-coated steel for hot forming, which is up to 50% lighter than conventional coldformed steel grades and is used for safety components of cars. The Baosteel Group ordered the delivery of five linear laser welding plants and is thus further expanding its leading position in production of tailor-welded blanks in China.

A coil line at the Oinofita Viotia works, Greece, will be refurbished for aluminum producer Elval. The order comprises the replacement of existing stainless steel cleaning sections by polypropylene sections, also including pumps, heat exchanger, piping, and instrumentation.

Hadeed Saudi Iron & Steel Company, Saudi Arabia, placed an order for the upgrade of an existing continuous galvanizing line and supply of four new polypropylene pickling tanks for an existing push-type pickling plant at the Al-Jubail works.

SEPARATION

MARKET DEVELOPMENT

The markets for solid/liquid separation equipment served by ANDRITZ showed a mixed development in the first quarter of 2015. While demand for the food and chemical industries as well as for municipal/industrial waste water treatment was good, investment activity in the mining industry remained unchanged at a very low level.

In the animal feed industry, overall project activity was solid, both for mill expansions and greenfield plants. The special feed area (aquatic feed and pet food) continued to show good demand. In the biomass pelleting sector, project and investment activity continued at a good level, especially in Asia and North America.

IMPORTANT EVENTS

A decanter system for the processing of wine and fruit was started up for a customer in Romania.

The first three of six supplied pressure filters for purifying terephthalic acid, used in the production of polyester clothing and bottles, have been started up for a customer in India.

Product development work has been finalized for the world's largest peeler centrifuge. The discontinuous centrifuge is designed for separation of fine particles (especially used in the food and chemical industries from liquids) and has a diameter of two meters with a surface area of nine square meters. The first two units have been sold to a customer in the Philippines.

The ANDRITZ D-type decanter for environmental applications was relaunched. The decanter achieves a reduction of power consumption by 40%, while maintaining throughput and efficiency.

IMPORTANT ORDERS

A customer in Peru selected the business area to provide a heavy-duty belt press for the dewatering of coke slurry. ANDRITZ SEPARATION is the only supplier worldwide with reference plants for this process.

A French customer ordered four decanter units for the processing of casein, a protein product derived from milk.

The business area received an order for two large decanter centrifuges for the processing of municipal wastewater for a customer in Arizona, USA. The decanters achieve higher solids dryness compared to similar equipment and reduce disposal costs.

A customer in Brazil awarded the business area an order to supply two peeler centrifuges and a helix dryer for the processing of active pharmaceutical ingredients.

One of the largest dairies in Brazil ordered two large separators. These units are integrated with ANDRITZ's automated monitoring and control systems, which reduce the product loss during discharge by up to 50%.

As part of a plant expansion project in Denmark, the world's largest producer of functional proteins from pork selected ANDRITZ to deliver two single-drum drying systems.

A customer in Thailand is expanding production capacity and selected the business area to provide five fully automatic peeler centrifuges for starch production. The units will replace several existing centrifuges supplied by local companies.

A Saudi Arabian customer ordered auxiliary thickening equipment for the production of specialty chemicals.

The business area received an order to supply a separator for high-level purification of fish oil for a customer in South Africa.

A fluid bed drying system for the processing of agrochemicals will be delivered for a greenfield plant in Russia.

In the feed area, several orders for new aquatic feed and animal feed processing lines were received from customers in Asia, Europe, and Latin America. Orders for biomass pelleting lines were noted from various customers in North America and Asia.

CONSOLIDATED INCOME STATEMENT

For the first quarter of 2015 (unaudited)

(in TEUR)	Q1 2015	Q1 2014
Sales	1,404,267	1,219,542
Changes in inventories of finished goods and work in progress	34,575	39,741
Capitalized cost of self-constructed assets	2,989	905
	1,441,831	1,260,188
Other operating income	51,649	30,849
Cost of materials	-746,435	-642,252
Personnel expenses	-421,375	-389,778
Other operating expenses	-229,612	-189,489
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	96,058	69,518
Depreciation, amortization and impairment of intangible assets and property, plant and equipment	-34,581	-40,549
Earnings Before Interest and Taxes (EBIT)	61,477	28,969
Expense from associated companies	-14	-24
Interest income	9,675	6,942
Interest expenses	-6,667	-8,458
Other financial result	-1,892	89
Financial result	1,102	-1,451
Earnings Before Taxes (EBT)	62,579	27,518
Income taxes	-18,780	-8,247
NET INCOME	43,799	19,271
Thereof attributable to:
Shareholders of the parent	44,037	20,657
Non-controlling interests	-238	-1,386
Weighted average number of no-par value shares	103,212,143	103,802,257
Basic earnings per no-par value share (in EUR)	0.43	0.20
Effect of potential dilution of share options	598,756	268,815
Weighted average number of no-par value shares and share options	103,810,899	104,071,072
Diluted earnings per no-par value share (in EUR)	0.42	0.20

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the first quarter of 2015 (condensed, unaudited)

(in TEUR)	Q1 2015	Q1 2014
NET INCOME	43,799	19,271
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS:
Currency translation adjustments	52,493	-3,096
Available for sale financial assets, net of tax	118	-102
Cash flow hedges, net of tax	-7,250	831
ITEMS THAT WILL NOT BE RECLASSIFIIED TO PROFIT OR LOSS:
Actuarial gains/losses, net of tax	0	0
OTHER COMPREHENSIVE INCOME FOR THE YEAR	45,361	-2,367
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	89,160	16,904
Thereof attributable to:
Shareholders of the parent	88,907	17,945
Non-controlling interests	253	-1,041

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of March 31, 2015 (unaudited)

(in TEUR)	March 31, 2015	December 31, 2014
ASSETS
Intangible assets	233,949	242,593
Goodwill	545,173	538,475
Property, plant, and equipment	742,976	715,255
Other investments	70,338	71,225
Trade accounts receivable	73,620	62,522
Cost and earnings of projects under construction in excess of billings	26,843	25,634
Other receivables and assets	135,910	111,738
Deferred tax assets	242,640	212,406
Non-current assets	2,071,449	1,979,848
Inventories	773,073	693,234
Advance payments made	164,012	150,207
Trade accounts receivable	632,222	705,819
Cost and earnings of projects under construction in excess of billings	557,659	476,549
Other receivables and assets	369,267	350,339
Marketable securities	149,807	154,294
Cash and cash equivalents	1,390,437	1,457,335
Current assets	4,036,477	3,987,777
TOTAL ASSETS	6,107,926	5,967,625
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	104,000	104,000
Capital reserves	36,476	36,476
Retained earnings	846,074	857,601
Equity attributable to shareholders of the parent	986,550	998,077
Non-controlling interests	16,386	16,721
Total shareholders' equity	1,002,936	1,014,798
Bonds	370,652	370,130
Bank loans and other financial liabilities	50,775	44,803
Obligations under finance leases	14,433	14,564
Provisions	562,184	548,840
Other liabilities	95,829	59,910
Deferred tax liabilities	161,989	137,672
Non-current liabilities	1,255,862	1,175,919
Bonds	0	150,839
Bank loans and other financial liabilities	79,616	75,907
Obligations under finance leases	730	802
Trade accounts payable	483,837	493,436
Billings in excess of cost and earnings of projects under construction	1,300,536	1,203,593
Advance payments received	275,135	251,288
Provisions	483,838	507,356
Liabilities for current taxes	33,191	46,470
Other liabilities	1,192,245	1,047,217
Current liabilities	3,849,128	3,776,908
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	6,107,926	5,967,625

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the first quarter of 2015 (condensed, unaudited)

								Non con trolling interests	Total share holders' equity
Share capital	Capital reserves	Other retained earnings	IAS 39 reserve	Actuarial gains/ losses	Currency translation adjust ments	Treasury shares	Total
104,000	36,476	838,057	-381	-24,240	-45,718	-8,457	899,737	29,743	929,480
		20,657	698		-3,410		17,945	-1,041	16,904
		-51,907					-51,907		-51,907
									718
		-765			-14		-779	-893	-1,672
									893,523
104,000	36,476	992,482	-3,684	-83,001	-15,249	-32,947	998,077		16,721 1,014,798
									89,160 -103,828
									997
									1,809
	104,000 104,000	36,476 36,476	-287 805,755 44,037 -103,240 -767 1,809 934,321	317 -6,887 -10,571	-24,240 -83,001	-49,142 51,757 36,508	1,005 -7,452 1,764 -31,183	Attributable to shareholders of the parent 718 865,714 88,907 -103,240 997 1,809 986,550	27,809 253 -588 16,386 1,002,936

CONSOLIDATED STATEMENT OF CASH FLOWS

For the first quarter of 2015 (condensed, unaudited)

(in TEUR)	Q1 2015	Q1 2014
Cash flow from operating activities	37,156	61,007
Cash flow from investing activities	8,662	11,897
Cash flow from financing activities	-140,478	-35,109
Changes in cash and cash equivalents	-94,660	37,795
Changes in cash and cash equivalents resulting from exchange rate fluctuation	27,762	-2,824
Cash and cash equivalents at the beginning of the period	1,457,335	1,227,860
Cash and cash equivalents at the end of the period	1,390,437	1,262,831

CASH FLOWS FROM ACQUISITIONS OF SUBSIDIARIES

No cash flows from acquisition have been carried out in the first quarter of 2015 and the corresponding period of the previous year.

NOTES

Explanatory notes to the interim consolidated financial statements as of March 31, 2015

General

The interim consolidated financial statements as of March 31, 2015 were prepared in accordance with the principles set forth in the International Financial Reporting Standards (IFRS) – guidelines for interim reporting (IAS 34) – which are to be applied in the European Union. The accounting and valuation methods as of December 31, 2014 have been maintained without any change. For additional information on the accounting and valuation principles, see the consolidated financial statements as of December 31, 2014, which form the basis for this interim consolidated financial report.

Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages.

The interim consolidated financial statements as of March 31, 2015 were neither subject to a complete audit nor to an audit review by an auditor.

Application of new standards

Since January 1, 2015 ANDRITZ applies the annual improvements to IFRS (cycle 2011-2013). The application of these updated standards did not have any material impact on the interim consolidated financial statements.

Consolidated companies

The scope of consolidated financial statements changed as follows:

	Full consolidation	Equity method
Balance as of January 1, 2015	139	3
Acquisition of companies	0	0
Disposal of companies	0	0
Changes in consolidation type
Additions	2	0
Disposals	0	0
Reorganization	-2	0
Balance as of March 31, 2015	139	3
Thereof attributable to:
Domestic companies	8	0
Foreign compagnies	131	3

Acquisitions

The following companies were not, or only partially, included in the ANDRITZ GROUP's consolidated financial statements for the reference period January 1 to March 31, 2014:

Acquired in 2014:

• Herr-Voss Stamco Inc., USA: Supplier of coil and sheet metal processing solutions for both ferrous and nonferrous applications as well as service business
• Certain assets and employees of the hydrogenerator service business sector of ABB Schweiz AG, Switzerland: Strengthening of the service basis for hydrogenerators in Switzerland.
• Andritz Hydro AFI Inc., Canada: Engineering, manufacturing, and maintenance of gates for hydropower plants

Acquisition of non-controlling interests

The following changes occurred relating to non-controlling interests in the first quarter of 2015:

• Precision Machine and Supply, Inc. (remaining 49%): In January 2015, Andritz has taken over the remaining 49% shares of Precision Machine and Supply, Inc., Spokane/Washington, USA.
• Shanghai Shende Machinery Co. Ltd. (remaining 20%): As the closing was not completed during the reporting period, these shares are reported under non-controlling interests in the interim financial statements as of March 31, 2015.

Seasonality

As a rule, the business of the ANDRITZ GROUP is not characterized by any seasonality.

Notes to the interim consolidated income statement

In the first quarter of 2015, sales of the ANDRITZ GROUP amounted to 1,404.3 MEUR and were thus 15.2% higher than the reference figure for the previous year (Q1 2014: 1,219.5 MEUR). The EBIT reached 61.5 MEUR (Q1 2014: 29.0 MEUR).

Notes to the consolidated statement of financial position

Total assets of the ANDRITZ GROUP as of March 31, 2015 amounted to 6,107.9 MEUR and were thus 140.3 MEUR higher than the figure as of December 31, 2014 (5,967.6 MEUR). The net working capital as of March 31, 2015 amounted to -673.2 MEUR (December 31, 2014: -570.9 MEUR).

During the current business year, ANDRITZ AG pays dividends in the amount of 103,2 MEUR for the 2014 business year. No shares were bought back and 43,000 shares were transferred to ANDRITZ employees (mainly in connection with the exercise of share option programs) during the first quarter of 2015.

Notes to the consolidated statement of cash flows

Cash flow from operating activities of the ANDRITZ GROUP amounted to 37.2 MEUR in the first quarter of 2015 (Q1 2014: 61.0 MEUR). This decrease was mainly due to project-related changes in the working capital.

Cash flow from investing activities during the first quarter of 2015 amounted to 8.7 MEUR (Q1 2014: 11.9 MEUR). The change resulted mainly from higher investments in tangible and intangible assets (-20,8 MEUR in Q1 2015 versus -17,2 MEUR in Q1 2014).

Cash flow from financing activities amounted to -140.5 MEUR in the first quarter of 2015 (Q1 2014: -35.1MEUR). The strong change resulted mainly from the redemption of a corporate bond in February 2015 (Nominal value: 150 MEUR).

Segment information

Segment information is prepared on the following basis:

Business areas

The ANDRITZ GROUP conducts its business activities through the following business areas:

• HYDRO (HY)
• PULP & PAPER (PP)
• METALS (ME)
• SEPARATION (SE)

Business area data as of March 31, 2015:

(in TEUR)	HY	PP	ME	SE	Total
Sales	407,911	480,526	377,084	138,746	1,404,267
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	27,914	33,559	28,247	6,338	96,058
Earnings Before Interest, Taxes, and Amortization (EBITA)	19,902	27,788	21,801	3,888	73,379
Capital expenditure	5,888	3,565	7,571	3,758	20,782
Depreciation, amortization, and impairment of intangible assets and property, plant, and equipment	9,147	8,188	13,297	3,949	34,581
Share of net profit/loss of associates	0	-14	0	0	-14
Shares in associated companies	0	0	0	0	0

Business area data as of March 31, 2014:

(in TEUR)	HY	PP	ME	SE	Total
Sales	362,849	399,614	332,813	124,266	1,219,542
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)	31,588	16,312	19,147	2,471	69,518
Earnings Before Interest, Taxes, and Amortization (EBITA)	24,370	10,378	13,331	509	48,588
Capital expenditure	7,851	4,178	3,501	1,667	17,197
Depreciation, amortization, and impairment of intangible assets and property, plant, and equipment	8,324	8,438	19,747	4,040	40,549
Share of net profit/loss of associates	0	-24	0	0	-24
Shares in associated companies	0	0	0	0	0

Fair value hierarchy

• The levels of the fair value hierarchy and their application to financial assets and liabilities are described below:
• Level 1: Prices quoted in active markets for identical assets or liabilities
• Level 2: Information other than prices quoted on the market and which can be observed, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
• Level 3: Information on assets and liabilities is not based on observable market data

The following table allocates financial assets and liabilities measured at fair value to the three levels of the fair value hierarchy. It distinguishes fair value measurements by the significance of the input parameters used and reflects the availability of observable market data when estimating fair values.

	Total as of
	March 31,	thereof	thereof	thereof
(in TEUR)	2015	level 1	level 2	level 3
FINANCIAL ASSETS
At fair value through profit and loss - trading
Derivatives	41,907		41,907
Embedded derivatives	79,270		79,270
Available for sale financial assets
Investment securities	7,269	7,269
Marketable securities	149,807	149,807
Other receivables
Derivatives (hedge accounting)	21,515		21,515
	299,768	157,076	142,692
FINANCIAL LIABILITIES
At fair value through profit and loss - trading
Derivatives	141,768		141,768
Embedded derivatives	27,426		27,426
Other liabilities
Derivatives (hedge accounting)	13,420		13,420
	182,614		182,614

Important events after March 31, 2015

On April 28, 2015, ANDRITZ Pulp Technologies Punta Pereira S.A., a subsidiary of international technology Group ANDRITZ and Celulosa y Energía Punta Pereira S.A. ("CEPP"), a Joint Venture by Stora Enso and Arauco, have amicably settled the arbitration proceedings between them in connection with several contracts for delivery of equipment and systems for CEPP's Montes del Plata pulp mill. The settlement will not have a material effect on the ANDRITZ Group's earnings, thus ANDRITZ's earnings expectations for the full year 2015 remain unchanged.

D A ST ECLA RTICL TOCK RATIO LE 87 K EXCH ON PU (1) OF HANG RSUA F THE GE ACT ANT TO (AUST TOTRIAN N)

We AND of t prov to th finan rema disc hereby confirm DRITZ GROUP he asset, finan vides a true and he important ev ncial statement aining nine mo closure and con m that, to the drawn up in co ncial, and earn d fair view of th vents of the firs ts of the ANDR nths of the fina ncluded with rel best of our k ompliance with t nings positions he asset, financ st three months RITZ GROUP, a ancial year, and ated persons a knowledge, the the applicable a s of the ANDR cial, and earning s of the financia and with regard d also with rega and companies. e condensed in accounting stan RITZ GROUP, a gs positions of al year and their d to the major ard to the majo nterim financial ndards provide and that the m the ANDRITZ G r impact on the risks and unce or business tran statements o a true and fair management re GROUP with re e condensed in ertainties during nsactions subje Of the view eport egard terim g the ect to

Graz z, April 2015

The Executive Boa rd of ANDRITZ AG

Wol Pres lfgang Leitner ident and CEO

Humbert Kö PULP & PAP (Service & Un PER nits),

SEPARATIO

ON

öfler Joac PU (Ca chim Schönbeck ULP & PAPER pital Systems),

METALS

Wolfgang Se HYDRO emper

SHARE

Relative price performance of the ANDRITZ share compared to the ATX (April 1, 2014-March 31, 2015)

Source: Vienna Stock Exchange

Share price development

The development of the international financial markets continued to be influenced by the uncertain general economic environment and resulting high volatility on the financial markets during the first quarter of 2015. In this environment, the ANDRITZ share price increased by 21.0% during the reporting period. Thus, the ANDRITZ share outperformed the ATX, the leading share index on the Vienna Stock Exchange, which rose by 14.5%.

The highest closing price of the ANDRITZ share in the first quarter of 2015 was 57.11 EUR (March 24, 2015) and the lowest was 44.63 EUR (January 8, 2015).

Trading volume

The average daily trading volume of the ANDRITZ share (double count, as published by the Vienna Stock Exchange) was 353,894 shares (Q1 2014: 389,767 shares). The highest daily trading volume was noted on March 20, 2015 (1,344,946 shares), the lowest trading volume on January 19, 2015 (167,238 shares).

Investor Relations

During the reporting period, meetings with private investors and international institutional investors and financial analysts were held in Denver, Frankfurt, Krems, London, Los Angeles, Milan, New York, and Zurich.

Annual General Meeting

The 108th Annual General Meeting of ANDRITZ AG, held on March 26, 2015, agreed to a dividend payment of 1.00 EUR per share for the 2014 business year (2013: 0.50 EUR per share).

The Annual General Meeting re-elected Fritz Oberlerchner and Kurt Stiassny as members of ANDRITZ AG's Supervisory Board for the maximum period stipulated in the Articles of Association (i.e. until the end of the Annual General Meeting deciding on the discharge for the 2019 business year).

Key figures of the ANDRITZ share	Unit	Q1 2015	Q1 2014	2014
Highest closing price	EUR	57.11	47.58	47.58
Lowest closing price	EUR	44.63	39.95	37.00
Closing price (as of end of period)	EUR	55.68	44.86	45.69
Market capitalization
(as of end of period)	MEUR	5,790.7	4,664.9	4,751.8
Performance	%	+21.0	-1.8	+0.0
ATX weighting (as of end of period)	%	12.3081	8.3545	11.6479
Average daily number of shares
traded	Share unit	353,894	389,767	305,027

Source: Vienna Stock Exchange

Basic data of the ANDRITZ share

ISIN code	AT0000730007
First listing day	June 25, 2001
Types of shares	no-par value shares, bearer shares
Total number of shares	104 million
Authorized capital	none
Free float	< 70%
Stock exchange	Vienna (Prime Market)
Ticker symbols	Reuters: ANDR.VI; Bloomberg: ANDR, AV
Stock exchange indices	ATX, ATX five, ATX Global Players, ATX Prime, WBI

Financial calendar 2015 and 2016 (preliminary)

May 6, 2015	Results for the first quarter of 2015
August 7, 2015	Results for the first half of 2015
November 6, 2015	Results for the first three quarters of 2015
March 4, 2016	Results for the 2015 business year
March 30, 2016	Annual General Meeting
April 1, 2016	Ex-dividend
April 4, 2016	Record Date
April 5, 2016	Dividend payment
May 4, 2016	Results for the first quarter of 2016
August 5, 2016	Results for the first half of 2016
November 4, 2016	Results for the first three quarters of 2016

The financial calendar with updates, as well as information on the ANDRITZ share, can be found on the Investor Relations page at the ANDRITZ web site: www.andritz.com/share.

Contact and publisher's note

ANDRITZ AG Investor Relations Stattegger Strasse 18 8045 Graz, Austria investors@andritz.com Produced in-house using FIRE.sys